Offshore Outsourcing

Outsourcing is the new buzzword rocking the global economic environment. Offshore outsourcing has changed the way business is conducted today! Every businessman today, welcomes any information on outsourcing. More and more organizations are utilizing various resources of outsourcing to gain business advantage.

Outsourcing is a business activity through which business firms attempt to reduce or eliminate its non-core areas of functioning. In simple words, outsourcing is based on the principal that no organization can perform all of its activities optimally and with same efficiency as others.

Every business firm irrespective of its size has to undertake various business activities or processes in order to achieve its targeted objectives.Each business activity consumes certain resources of business. A business process that consumes more resources will reduce the overall profitability. A firm will detect such high consumption activities by comparing their output with its resources consumed. In order to reduce the resource consumption, business organization stops performing the activity that does not produce satisfactory output when compared to its resource consumption.

The organization instead contracts with another entity that is better at performing that particular activity and would carry forward the same on behalf of the business organization. This arrangement would lead to lesser resource consumption and increase the competitiveness of the business organization. This arrangement is nothing but ‘Outsourcing’. Popularly, organizations that outsource their processes are termed as, client or buyer or outsourcer. And those firms that provide outsourced activities are know as service providers or vendors or supplier.

Offshore outsourcing literally means outsourcing your activity to one who is not on your shore or who is beyond your shore. Offshore outsourcing is a concept in which the buyer of the service is located in some other country then the provider of the service. Organizations are tempted to invest in offshore outsourcing resources because when compared to their own countries, certain nations have vast & easily accessible resources that can be exploited to gain competitive advantage.